The Reserve Bank’s chief economist, Sarah Hunter, is worried Australians will expect inflation to stay high which could potentially lead to higher prices for longer if consumers don’t cut their spending in anticipation of another rate hike. “We have to get inflation down, that is what we can do to help relieve some of that burden.” Dr Hunter admitted higher crude oil prices would make it hard for the Reserve Bank of Australia to raise interest rates again during a time of weak economy activity. The trade-off, of a weakening economy, is already showing as a result of the Reserve Bank’s three hikes this year, that have taken the cash rate to 4.35 per cent. The cost of building a new home soared by 5.8 per cent during the last financial year, the fastest increase in three years, as higher interest rates, new Primara Research data for homeloanrates.com.au showed.